Questions from Macroeconomics


Q: What is the loanable funds market?

What is the loanable funds market?

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Q: Why is the real interest rate the opportunity cost of loanable funds

Why is the real interest rate the opportunity cost of loanable funds?

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Q: How does a government budget surplus or deficit influence the loanable funds

How does a government budget surplus or deficit influence the loanable funds market?

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Q: What is the crowding-out effect and how does it work

What is the crowding-out effect and how does it work?

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Q: Michael is an Internet service provider. On December 31, 2014

Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000. During 2015, his business grew and he bought new servers for $...

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Q: The table sets out the data for an economy when the government’s

The table sets out the data for an economy when the government’s budget is balanced. Suppose that the quantity of loanable funds demanded increases by $1 trillion at each real inter...

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Q: Michael is an Internet service provider. On December 31, 2014

Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000. During 2015, his business grew and he bought new servers for $...

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Q: First Call, Inc., a smartphone company, plans to build

First Call, Inc., a smartphone company, plans to build an assembly plant that costs $10 million if the real interest rate is 6 percent a year or a larger plant that costs $12 million if the real inter...

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Q: A typical family on Sandy Island consumes only juice and cloth.

A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $25 on cloth. In the base year, juice was $4 a bottle and cloth wa...

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Q: The table sets out the data for an economy when the government’s

The table sets out the data for an economy when the government’s budget is balanced. If the government’s budget becomes a deficit of $1 trillion and the Ricardo-Ba...

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